ICM Crisis News Annual Report Available

My colleague Larry Smith, President of the Institute of Crisis Management, has released his latest annual report on crisis news for the year ending 2007.

Not surprising the report notes the sub-prime debacle as one of the most far reaching crises of 2007. Overall business crises were down slightly in 2007, compared to 2005, yet still up considerably from the low crisis year of 2004.

ICM has been tracking 16 broad crises categories since 1990. These categories include catastrophes, environmental, class action lawsuits, consumerism actions, defects nd recalls, discrimination, executive dismissal, financial damage, hostile takeovers, labor disputes, mismanagement, sexual harassment, whistle blowers, white-collar crime, work place violence and casualty accidents.

You can read the report at www.crisisexperts.com

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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Starbucks is Getting Serious Again About Customer Service

Starbucks nationwide to close for emergency re-training Feb. 26

Sarah Gilbert hits the mark with her latest post. The issue of customer service is at the forefront of one of the nation’s biggest coffee bars. For a company that has been praised by Joseph A. Michelli in is book The Starkbucks Experience: 5 Principles for Turning Ordinary into Extraordinary the company is now hurting from its failure to follow-through and ensure exemplary training of all its employees. Two weeks ago I had my first unacceptable customer experience at a Starbucks near Tullahoma, Tenn. Sure enough the youngsters there were more interested in listening to their music than fixing a decent espresso. In fact, it was the worst cup of coffee I had had in a long time! Maybe the Feb. 26 shutdown for re-training will turn the company around. If not, like so many companies we may have to give them our “Stinking Fish Award” and that would truly be sad for a company we once thought set the standards for exceptional customer service.

Posted Feb 13th 2008 7:46PM by Sarah Gilbert
Filed under: Starbucks (SBUX), Employees

I know I’m not the only one who’s complained that Starbucks baristas don’t know how to make a decent latte any more. Far from its roots as the reliable place to get coffee made exactly right, the chain has lately become famous for its automatic machines and the hit-or-miss quality of its products.

Howard Schultz is here to change all that: by shutting down Every Last Storenationwide for three hours on Tuesday, February 26. Starting at 5:30 p.m., baristas in the coffee giant’s 7,100 stores will learn how to do things better. They’ll learn how to make a perfect shot, how to steam milk, and (if we have anything to say about it) how not to burn coffee, and how to wipe the milk steamer before switching from dairy to soy milk. (Vegans everywhere will say thank you.)

While it’s doubtful that three hours of training will reverse years of gathering mediocrity, it’s certainly a symbol of a company that cares about quality. If Howard is serious about this change stuff (and it’s obvious that he is), he’ll consider switching back to manual latte machines, at least in some stores located in serious coffee markets (like certain neighborhoods in Seattle, Portland and San Francisco). Speed and convenience is no price to pay for really good coffee. Some customers will agree; others will probably mutter swearwords under their breath as they pull up to their local Starbucks only to find it Closed For Training in a couple of weeks. Which customer are you?

Exemplary Public Relations for Starbucks

In the January 15, 2008 issue of Bottom Line Personal, there is an article about a man who wrote a book entitled, “How Starbucks Saved My Life.” 

The book is about a man who was a former six-figure advertising executive, and by age 63 was divorced, unemployed, nearly broke, and diagnosed with a brain tumor. 

Because he was in desperate need of health insurance and a regular paycheck, he took a job serving coffee at Starbucks for $10.50 an hour.  He ended up loving the job.

Today he is healthy, has sold his life story to Hollywood ( and it appears that Tom Hanks will probably play him in the film) and yet still plans to work at Starbucks because he enjoys the job. 

This type of public relations for a company simply can not be bought at any price!

This type of public relations is simply priceless and it couldn’t come at a better time for Starbuck’s, who has raised its prices twice in the past year and is facing major competition from McDonald’s and Dunkin Donuts. 

It also showcases a company that has created an exemplary working environment.  Simply, great work environments attract great employees, who offer better customer service, which makes for better sales.

Now this my friends is the best of all worlds.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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A Mutli-part Series: Part 2 - An Assessment of Larry G. Hincker, University of Virginia’s Chief Spokesperson’s Performance

I suspect that when Larry G. Hincker joined Virginia Tech in 1989 he never conceived of the possibility that he would one day be the spokesperson for the deadliest campus shooting in the history of the United States.

Yet, as many professionals have had to do over the years, Hincker stepped to the plate in April 2007 and carried a heavy burden.

More than 400 media worldwide descended on that campus and students, faculty, staff, alumni and families had to be dealt with as efficiently and effectively as possible under the most trying of circumstances.

Hincker, associate vice president of the Office of University Relations, did a number of things well and some things could have been done better.

This column looks at both sides of the assessment and makes some observations.

You must know your audiences

We assess Hincker did a better than average job at understanding all his audiences.

Seemingly, Hincker assessed his target audiences as the students, the faculty, staff, parents, alumni, and his neighbors the people in the region. Although at times apparently working through shock and not really knowing what all he had to do, he did for the most part still understand the need to get accurate information to these audiences and worked toward informing them as best he could.

The program at Va. Tech functioned better than average probably because of the different mediums available to them to communicate to the targeted audiences. The university used e-mail, surface mail, their publications and their web site most effectively.

The web site http://www.vt.edu/ provided a 24/7 immediate way for anyone to connect to the university during the crisis.

Planning provided foundation

The Va. Tech pre-planning for a crisis saved lots of time and allowed for an effective implementation. The plan appeared to have been resilient and Hincker notes that the       ” the simpler the plan the better” speaking to reporter Dr. Frances Ward-Johnson APR in PRSA The Strategist  (Summer 2007).

However, Hincker is quick to note that a plan is essential. It is obvious that no organization could possibly be prepared to handle the extensive media attention that Va. Tech had during this time without a plan.

The old adage “expect the unexpected always” served the university well.

Va. Tech’s plan provided the framework for decision making, for example, although they had planned for a media center in the event of a crisis the center was not sufficient in size to handle the 400 plus journalists and their equipment.

However, the plan forced them to consider alternatives and make decisions to handle the situation expeditiously.

Media sensationalism

You and your senior management must be prepared for the media sensationalism that will always occur.

Although Virginia Tech had its share of sensational media coverage, which is to be expected in any situation such as this, overall the media seemed to work well with the university and assisted in some cases I believe in getting their messages out quickly.  

When the media is willing to assist your senior management in setting up and doing press conferences then you have a major advantage.

Our observations

As a crisis communications’ consultant, here are some observations we have:

• Hincker did a commendable job under very difficult circumstances and although he may have deviated from some of the standard approaches to crisis communications at times overall we would give him a solid “B” for his performance.
• Daily organization of information and keeping up-to-date during such a crisis is a major challenge for the spokesperson under any circumstances. The relationships the spokesperson has with the crisis managers is critical and those relationships must be established prior to the crisis.
• Hincker brought in experts when available and needed. He knew the extent of his expertise and did not speculate or pontificate to any degree we can assess.
• He understood that journalists, students, families, faculty and staff were as shocked as he and all the others at Va. Tech were at the carnage and situation. His empathy with these folks, and especially the journalists’ job and their coverage, helped establish needed rapport.
• Hincker understood the need to establish boundaries for the media. His posting of signs to “please respect their grieving process and to not go beyond these doors” was the right thing to do. For the most part the media respected it.
• Va. Tech’s use of their web site and the tie Hincker had with that staff to keep information updated was well executed because they used a “light site” based on previous experiences with crisis’s on campus.
• Va. Tech was behind the curve on getting their text messaging system in place. Although they had a new system that would have effectively used text messaging it was not yet on line when this crisis occurred.
• Hincker knew intuitively when to end the crisis and the ensuing press conferences and did so appropriately. The media agreed with his assessment.
• Hincker understood the need to accommodate the media. He provided them places to sleep in the media center and food and coffee.
• The university understood the importance of accepting pro bono assistance from the services of a local public relations firm.
• Finally, Hincker is very clear that he will not allow his university to be defined by this singular horrific event. He is now turning his attention to repositioning the image of the university back to the important aspects of Virginia Tech.

Larry Hincker’s professionalism and performance was exceptional under the most horrific and trying of circumstances. We commend him and are honored to have him as a member of our profession.

Until next time.

Dr. Darryl

L. Darryl Armstrong

ARMSTRONG and Associates

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We can learn many life lessons from Maria Ortega

June 9, 2007

RIVERSIDE, CA — Corner of Main Street and Mission Inn Avenue.

You can’t but help liking southern California. For a good ole southern boy like myself, coming here is always a treat. The people and climate are different from the South and I find I listen more intently and watch more closely those around me — living and learning still at 56 years old.

Kay produces an educational event for Lockheed Martin here at Longfellow Elementary School where Maria Ortega has been principal for the past eight years. This will be the 9th year we have provided such an educational outreach activity for the inner city school children in Riverside.

Probably of all the events over the years that I have participated in or helped Kay produce, this one always warms my heart more than any other.

I have pondered the reasons why this is many times and always come back to one conclusion — Maria Ortega.

Maria is married to Louis and they have a 12-year old daughter, and tonight (Saturday) she will entertain, host and ensure the safety of 25 of her daughter’s friends, who will be spending overnight at her daughter’s birthday party.

On Monday, she will return to Longfellow Elementary, an inner city school nestled at the foot of the mountains in Riverside, and surrounded by low-income yet exceptionally well-kept homes in this setting and it is here that she will ensure the education and safety of her charges.

I assure you that will frequently see this 5′5″ lady frequently smiling at various things that life presents her, be it 25 kids for a sleep over, an 8-year old deeply troubled child, who requires high levels of attention, or a special event that overtakes her school for an entire day.

Maria is one of those truly unique people that when challenges are presented, whatever they be, she finds a way to go around, go over, go under or head-on into them.

She inspires and motivates by example.

When you see her lovingly talking to her children you recognize that there are still people in our public school systems that do care about our children and that will go that extra mile to help our kids become the best they can be.

Maria’s children are inner city. Many of them are homeless, come from one parent families, are being raised by their grandparents or relatives, have seen drugs, alcohol, meth and other addictions up close and personal.

Many of these children have been abused, neglected and are growing up in a hard life and without the inspiration of elders like Maria would have no sense that their future could look different than their past.

Maria teaches by example.

When a child is hurting, she is there to hug. When a child needs discipline, she is there with the firm word and explanation of why such behavior is not acceptable. When a child needs insight, she asks for the child’s feelings and shares her own. And when a child needs to know without any doubt they are loved there is no hesitation to show and tell them that most assuredly they are.

I have always counseled my clients that leadership starts at the top of an organization.

I believe that you can tell within minutes of entering any organization and talking to the “person in charge” what type of culture the organization is all about and if there is leadership present or not.

A leader is motivating, inspiring, focused, compassionate, committed to their people, an exemplary listener, mission driven, and visionary.

Longfellow Elementary has one of the finest leaders I have ever had the privilege of working with and knowing.

And suffice it to say that in my dictionary, you will see a picture of Maria Ortega beside the definition of leadership and she is why my heart is always warmed when I come to Riverside.

We couldn’t be more thankful than to have the opportunity to work with her.

Until next time.

L. Darryl Armstrong

ARMSTRONG and Associates

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When good people set out to do the right thing, in the right way and with passion and conviction they invariably succeed

June 2, 2007
Marshy Point Nature Center Festival, Middle River, Maryland

Kay and I are honored today to be a part of the festival here on the bay near Middle River, Maryland. We are working this event on behalf of our client Lockheed Martin. Lockheed Martin is voluntarily cleaning up some environmental issues at their facilities in Middle River.

We are attending and participating in this festival to keep the public informed about that work. The two of us are staffing a tabletop display under a tent with weather in the 80s accompanied by a bright sun, lots of humidity and horse flies.

I remarked to Kay that when I arrived here today that this is reminiscent of my days when I worked with the Tennessee Valley Authority at Land Between The Lakes (LBL). This was during the 1970s and at that time TVA clearly understood the importance of their mission to educate youngsters about the environment. It was a part of the very heart and soul of the agency.

Many of my favorite memories are from the LBL days and many of the important learnings from that part of my career still resonant and influence the way we conduct our own business today.

I learned early from those experiences that an informed and educated audience is one that will work with you to accomplish even the most difficult of tasks even under the most difficult of circumstances.

It was through the vision of educators such as John Paulk, Lynn Hodges and Larry Contri that LBL came to be known for the decades of the 70s as the place to bring your child, if you wanted them to learn about the environment.

TVA, LBL, and indeed the entire region of western Kentucky, owe these pioneering environmental educators may thanks for their groundbreaking and diligent work.

Today, the USFS touts its “new” efforts to educate children on environmental issues. They make much fodder of the “grants” they have received to do this work. Much like TVA did for 30 some years, the USFS now struggles to gain credibility with the regional stakeholders and the users of the national recreation area.

Their work is noted and appreciated.

It is good work begun years ago by people who understood the importance of teaching students, who are now my age and older, that we should respect our environment and learn to live with it.

The early educators didn’t go to extremes and lead anyone to believe that the world was coming to an end, that failure to recycle would make you a bad person, or that you should buy carbon credits to ease your conscience.

Rather, the early pioneers of environmental education understood the importance of teaching children how to respect nature and appreciate it. They helped to place into perspective that Man had long lived with Nature in harmony.

Sadly, those days are gone yet like all things in education, and indeed in society, the trend dies only to be reborn again by the government and its agencies under some new name and with some new mission.

However, the good people here at Marshy Point in Maryland understand the importance of environmental education. They seemingly have a passion for what they do, for what they believe, and for what they will pursue. I, thankfully, don’t see them diverting their resources in the future as they see environmental education of the next generation and beyond as a scared and continuing mission.

Perhaps, as we reflect on our personal and business missions periodically we should ask ourselves, if indeed, our missions are scared.

• Are we passionate enough about what we do with our life work to sustain it even in the light of changing political and social winds?
• Are we willing to stay our courses even when others are deviating trying to find the latest politically correct or business du jour?
• Are we focused enough to re-engineer our businesses and our philosophy without losing our hearts and souls in the process?

When good people set out to do the right thing, in the right way and with passion and conviction they invariably succeed. The best people to do that are those with a focused mission, a set of strategies that will lead them down the path to success, and the daily “chopping wood and hauling water” that we all most do.

The folks here at Marshy Point are such people.

Until next time.

L. Darryl Armstrong
ARMSTRONG and Associates

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That’s why they call it public relations

It’s all about relationships.

Kay and I are working this weekend in Middle River, Md for our client Lockheed Martin. The Lockheed Martin Corporation is voluntarily cleaning up some environmental problems at its site in Middle River. The corporation is committed to doing the right thing when it comes to seeking out the environmental problems and then cleaning them up.We had the pleasure Friday evening meeting with three civic leaders and their wives and hosting them to dinner. One of the invitees asked what I thought was the most important thing that a large corporation could do when working in a community.

My response was very direct and sincere. The corporation must abide by the law, they must “do the right thing and do it in the right way” yet more importantly than all this is they must develop relationships with their neighbors.

And that is what Kay and I work very hard to do in the communities in which we work. After all it is called public relations for a reason - it is all about developing relationships with the people you are working for and with.

However, relationships are not developed overnight.  They require nurturing and lots of care. They require open and honest communications and lots of give and take. They require much more listening and lots less talking.

Relationships when built well turn into friendships. Yet, even if they don’t become full-blown friendships, a good relationship can and will serve both parties well. We work very hard to establish viable relationships in the communities in which we work and I am pleased to report that many of the relationships we have established in Middle River on this project have matured into genuine friendships.

For that we are grateful.

Until next time. 

Dr. L. Darryl Armstrong